IRS Shifts Away From Paper Checks Triggers Tax Refund Delays

More than 830,000 filers receive CP53E notices about refund payment changes

Mar. 13, 2026 at 5:51pm

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The IRS is phasing out paper tax refund checks, leading to delays for over 830,000 filers who requested paper checks. The agency is now requiring these taxpayers to provide direct deposit information within 30 days or face further delays of at least 10 weeks to receive their refunds.

Why it matters

The IRS shift away from paper checks is impacting taxpayers who prefer not to provide direct deposit information, including the unbanked, those living abroad, individuals with religious constraints, victims of domestic abuse, and people with disabilities. This change has been criticized as "punishing" those who don't want to share their banking details with the IRS.

The details

The IRS is sending CP53E notices to over 830,000 filers who requested paper refund checks, giving them 30 days to provide direct deposit information online. If they fail to do so, the IRS will issue paper checks after a 6-week delay. Taxpayers cannot resolve this issue by calling the IRS, and tax preparers are unable to update banking info on their clients' behalf, even with power of attorney.

  • In March 2025, President Donald Trump signed an executive order mandating government agencies transition from paper to electronic payments.
  • During the 2025 filing season, roughly 94% of individual taxpayers opted for direct deposit refunds.
  • The remaining 10 million taxpayers, or 6%, received refunds via paper check.

The players

Scott Bessent

Treasury Secretary and acting IRS Commissioner.

Danny Davis

U.S. Representative and ranking subcommittee member on the House Ways and Means Committee.

Terri Sewell

U.S. Representative and ranking subcommittee member on the House Ways and Means Committee.

Erin Collins

National Taxpayer Advocate, who wrote about the factors leading some taxpayers to receive paper refund checks.

Josh Youngblood

Owner of The Youngblood Group, a Dallas-based tax firm, and an enrolled agent licensed to practice before the IRS.

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What they’re saying

“Having reviewed the IRS notice and called the IRS phone lines, we learned that there is no simple process for these taxpayers to request an immediate release of their refund by paper check without waiting at least 10 weeks.”

— Danny Davis, U.S. Representative and ranking subcommittee member on the House Ways and Means Committee (CNBC)

“Many of these taxpayers receive paper checks due to systemic, geographic or religious factors.”

— Erin Collins, National Taxpayer Advocate (CNBC)

“This change also 'punishes those who don't want to provide direct deposit information'.”

— Josh Youngblood, Owner of The Youngblood Group, a Dallas-based tax firm, and an enrolled agent (CNBC)

What’s next

The House Ways and Means Committee Democrats have sent a letter to the Treasury Secretary and acting IRS Commissioner seeking answers about the over 830,000 IRS notices sent to filers regarding refund delays for paper payment requests.

The takeaway

The IRS's shift away from paper tax refund checks is causing significant delays for over 830,000 filers who prefer not to provide direct deposit information, impacting vulnerable populations like the unbanked, those living abroad, and individuals with religious or disability constraints. This change has been criticized as unfairly penalizing taxpayers who do not want to share their banking details with the IRS.